Cost

Discount refers to the percent off from list price experienced by the equipment buyer. Including discount as an ownership factor will result in more accurate internal charge rate calculation.

Annual Use Hours are the average number of hours per year that a machine performs work as determined by surveying equipment owners.

Economic Life Hours reflect the average economically productive life of a machine used under average conditions with normal repairs and maintenance.

F.O.B. (Free on Board) refers to the practice by which the supplier pays shipping costs from the place of manufacture to a specified destination where the legal title then transfers to the purchaser.

Standby refers to the situation where equipment is on the job and available for work, but is not put into operation until needed.

No industry standard exists regarding the handling of fixed Ownership costs in computation of overtime rates.

Hourly Estimated Cost include the cost of labor and parts needed for routine, daily servicing of the equipment.

Indirect equipment costs consist mostly of overhead costs such as normal risk insurance and property taxes along with storage, security, mechanics supervision, inspection, licenses, and record keeping.

Standy refers to the period during which equipment is assigned to a job and available for work, but is not put into operation until needed.

Equipment overhead costs include the direct costs of normal risk insurance and property taxes along with the indirect costs of storage, security, mechanics supervision, inspection, licenses, and [...]